[Congressional Record Volume 159, Number 65 (Thursday, May 9, 2013)]
[Senate]
[Pages S3330-S3331]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself, Mr. Rubio, and Mr. Warner):
  S. 915. A bill to amend the Higher Education Act of 1965 to update 
reporting requirements for institutions of higher education and provide 
for more accurate and complete data on student retention, graduation, 
and earnings outcomes at all levels of postsecondary enrollment; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. WYDEN. Mr. President, when my colleagues and I went to college, 
things were a lot different. We took out loans, but those loans were 
manageable, and there were jobs waiting after graduation. Today, too 
often, that's simply not the case. In fact, the majority of students 
today will leave school weighed down with more than $26,000 in debt and 
will attempt to enter a labor market in an environment where there are 
more unemployed Americans than there are jobs available.
  For the first time in our Nation's history, student loan debt exceeds 
credit card debt and now totals over $1 trillion.
  James Garfield once said, ``Next in importance to freedom and justice 
is popular education, without which neither freedom nor justice can be 
permanently maintained.'' He was right. Investment in higher education 
is an economic imperative. Education is the great equalizer. It enables 
upward economic mobility and breaks down class structures. A highly 
skilled and educated workforce is the basis for any healthy economy. It 
is the foundation of our country's future.
  In nearly every financial decision Americans make, individuals and 
families try to evaluate the economic value of that decision. Like 
prospective homebuyers who inspect and assess the potential value of 
their future home, students should be able to compare colleges and 
programs based on what the likely return on their investment will be.
  Our capital markets work best when there is transparency so we can 
accurately measure the value of what we choose to invest in. We saw 
what happens when this is not the case with the burst of the housing 
bubble. Our economy is still struggling to recover from the mortgage 
crisis. Misinformed consumers bought a product based on misleading 
information and, often times, fell victim to bad loans offered by 
predatory lenders.
  Consumers must know what they can expect from their investments. 
Similarly, students are entitled to know the value of their education 
before they borrow tens of thousands of dollars from banks and the 
government to finance their future.
  Right now, consumers don't have this information. It is unavailable 
to students and families who are making critical decisions that will 
impact not only their future, both their financial future and career 
path, but also the collective future of our country. That is why today, 
Senator Rubio, Senator Warner and I are introducing an updated version 
of the Student Right to Know Before You Go Act which will help inform 
consumers and prevent market failures.

[[Page S3331]]

  This proposal would ensure future students and their families can 
make well-informed decisions by creating a market in which specific 
schools and specific programs can be evaluated based on the average 
annual earnings and employment outcomes of graduates; rates of remedial 
enrollment and success of students that participate in remedial 
education; the percent of students that receive Federal, State, and 
institutional grant aid or loans; the average amount of total Federal 
loan debt of students upon graduation; the average amount of total 
Federal loan debt for students that do not complete a program; transfer 
success rates; and rates at which students continue on to higher levels 
of education.
  The Department of Education has created a College Scorecard which is 
a step in the right direction. The Scorecard, however, does not fully 
capture any of the metrics outlined above and includes no information 
to prospective students to evaluate the economic returns of their 
program of study. The Wyden-Rubio-Warner bill generates this critical 
information.
  Markets fail when there is too little information and until now, it 
has been impossible to ``Collect this data in a cost-effective way 
while ensuring student privacy.
  This proposal makes it possible to secure a return on investment for 
students, parents, policy makers, and taxpayers while creating a 
workforce that meets the demands of today's businesses and ensures that 
American workers can successfully compete in the global economy.
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